Instructions for Preparing

Six-Year Nongeneral Fund Revenue Estimates

Department of Planning and Budget

October2014

TABLE OF CONTENTS

Nongeneral Fund Revenue Estimates Overview

About the Nongeneral Fund Revenue Estimate Submission

Performance Budgeting System Instructions

Nongeneral Fund Revenue Estimate Quick Guides

Six Year Nongeneral Fund Revenue Estimate Tab Overview

Six Year Nongeneral Fund Revenue Estimate Tab Instructions

2015 Nongeneral Fund Revenue Estimates

Nongeneral Fund Revenue Estimates Overview

About the Nongeneral Fund Revenue Estimate Submission

The Six-Year Nongeneral Fund Revenue Estimate for the 2015General Assembly Session should be submitted to DPB by October 31, 2014. Estimates should be completed using the Performance Budgeting System, specifically the Six-year Nongeneral Fund Revenue Estimate module.

Your agency’s last nongeneral fund estimate submission (i.e. estimates submitted last Fall) has been pre-populated in the Six-year Nongeneral Fund Revenue Estimate module. Your agency should use this module to make any changes or updates based on current policy to the estimate for the upcoming session. Because the next session of the General Assembly will consider amendments to the 2014-2016budget, your nongeneral fund revenue estimates will cover the time period including FY 2015 through FY 2020.

Please note that any new nongeneral fund revenue sources or changes in nongeneral fund revenue based on proposed policy changes require a Decision Package and, therefore, should not be incorporated in these changes. You should use the Decision Package Module, specifically the NGF Revenue Source Tab, within that module, to reflect any new nongeneral fund revenue sources you anticipate will require additional appropriation. These policy changes that require additional appropriation should have already been reflected in the NGF Revenue Source Tab of the Decision Package Module. If not, please contact your DPB analyst as soon as possible.

To create your nongeneral fund revenue estimate in the Performance Budgeting System you must first create a new work item by clicking “Six-Year NGF Revenue Estimate” under the “Six Year Plan” menu in the Performance Budgeting System work tray/main screen.

A detailed use guide on how to submit the nongeneral fund revenue estimates in the Performance Budgeting Systemisincluded at the end of these instructions. For additional guidance regarding methodology and preparation of your nongeneral fund revenue estimates see the Overview section of this guide.

If you have any questions regarding policy and procedures, please contact your DPB budget analyst. If you experience technical issues with the Performance Budgeting System, please contact the VCCC help desk at . (Make sure to indicate in the subject line that you are experiencing a Performance Budgeting System issue so the ticket can be routed to the Performance Budgeting System help desk).

Performance Budgeting SystemInstructions

Nongeneral Fund Revenue Estimate Module

Overview

All agencies which receive nongeneral fund revenue appropriations must submit a nongeneral fund revenue estimate to indicate the anticipated nongeneral fund revenues expected to be received.

The required projections for each source of nongeneral fund revenue must be obtained from the state agency collecting the revenue. To give consistency to agency plans and submissions, methodologies are presented below for use by state agencies in preparing nongeneral fund revenue projections.

  1. Revenue collected by state agencies (e.g. taxes, licenses, permits, fees or institutional revenue, etc.): To calculate these revenues,
  1. Assume that the current tax rate, fee, or charge and its method of application will remain unchanged over the projection period, unless otherwise provided by law.
  2. Use as far as practical a statistical projection technique (i.e., times series trend line, linear regression, multiple regression, econometric model etc.). Please do not simply hold current revenue collections constant for future years unless such action can be justified or unless past revenue collections have not varied by more than 1 percent after adjustments for rate or fee changes over the last five years.
  3. Base assumptions about population growth on the population projections by age, race and sex as supplied by the Virginia Employment Commission’s (VEC) – Virginia’s Workforce Connection, on the attached link:
  4. Relate fees and charges to known or expected trends in pertinent caseloads when possible (e.g. fees for the mentally ill versus institutional population etc.).
  5. See the above link to VEC regarding other standardized forecasts of economic or demographic variables (e.g. personal income, employment, population, inflation etc.).Technical adjustments. This category is for technical or housekeeping adjustments that do not have an overall net general fund budget impact or do not involve policy decisions, such as to shift funds or positions between programs or service areas or to appropriate additional nongeneral fund revenue (such as a federal grant that is more than originally anticipated or will continue for an additional year).
  1. Revenue from Federal grants or donations: To calculate theses revenues;
  1. Assume that current collections from federal project grants which are non-recurring in nature or which have a designated termination date within the six-year projection period will not be continued or extended past such date.
  2. Assume that solicitations currently underway or anticipated for federal project grants will be approved.
  3. Assume total federal funding authorizations will remain constant over the six-year projection period, unless increases or decreases are scheduled and justified by pending Congressional action or expected by the administering federal agency.
  4. Make allowance in projections for changes in federal/state matching requirements when such changes are prescribed by formula grant allocations.
  1. Nongeneral fund revenue forecasts (Institutions of Higher Education):
  1. Assume the 67/33 formula (see §4-2.01b.3.b) will apply with respect to tuition and fee structures in the institutions of higher education. Assume SCHEV preliminary enrollment forecasts are final, for both headcount and position levels.
  2. Apply the institution’s projected tuition and fee structure as related to the 67/33 formula to projected enrollments.
  3. Auxiliary Enterprises, assume that fees and charges will change to cover the anticipated operating expense of auxiliary enterprises and that the appropriation act assumes that these expenses are the same as sum sufficient expenditures.
  4. Sponsored Programs: See the assumptions for federal grants listed above.

Nongeneral Fund Revenue Estimate Quick Guides

AGENCY ANALYST QUICK GUIDE

  1. Mouse over theSix Year Plansfunctional area menu item and selectSix-Year Nongeneral Fund Revenue Estimatefrom the resulting dropdown menu.
  2. TheSix-Year Nongeneral Fund Revenue Estimatetab will appear.
  3. Complete theSix-Year Nongeneral Fund Revenue Estimatetab as described in the Six-Year Nongeneral Fund Revenue Estimate Tab instructions.
  4. ClickSubmitand select the appropriate action from the available options.
  • Continue Working- Saves the six-year nongeneral fund revenue estimate and returns it to the Available Work Items tab in the Work Tray to be claimed by users with similar credentials.
  • Submit for Agency Review- Submits the six-year nongeneral fund revenue estimate to the next step in the workflow.
  • Void Document- Voids the six-year nongeneral fund revenue estimate.

AGENCY REVIEWER QUICK GUIDE

  1. SelectAvailable Work Itemsin the Work Tray.
  2. Select theDocument Typefilter and selectSix-Year NGF Revenue Estimatesto filter on the six-year nongeneral fund revenue estimates.
  3. ClickClaimnext to a six-year nongeneral fund revenue estimate that is ready for review. TheSix-Year Nongeneral Fund Revenue Estimatetab will appear.
  4. Review theSix-Year Nongeneral Fund Revenue Estimatetab for completeness and accuracy according to the instructions issued by DPB. Prior to submitting the six-year nongeneral fund revenue estimate to DPB, ensure that the correct scenario is loaded in the Six-Year Nongeneral Fund Revenue Estimate grid.
  5. ClickSubmitand select the appropriate action from the available options.
  • Continue Review- Saves the six-year nongeneral fund revenue estimate and returns it to the Available Work Items tab on the Work Tray for users with similar credentials to claim.
  • Submit for DPB Review- Submits the proposed six-year nongeneral fund revenue estimate to DPB.
  • Return for Further Data Entry- Returns the six-year nongeneral fund revenue estimate to the data entry workflow step.
  • Void Document- Voids the six-year nongeneral fund revenue estimate.

Six Year Nongeneral Fund Revenue Estimate Tab

Six Year Nongeneral Fund Revenue Estimate Tab Overview

The purpose of the NGF Revenue Source tab is to capture a six-year estimate of any NGF revenues for each agency.

The NGF Revenue Source grid has been pre-populated with current NGF revenue estimates. Please note that any new nongeneral fund revenue sources, i.e. new policy changes or requests that require a decision package should not be incorporated in these estimates. You should use the Decision Package Module, specifically the NGF Revenue Source Tab, within that module, to reflect any new nongeneral fund revenue sources you anticipate will require additional appropriation.

Six Year Nongeneral Fund Revenue Estimate Tab Instructions

  1. Click theSix-Year Nongeneral Fund Revenue Estimatetab.
  2. Select theAgencyfor which the six-year nongeneral fund revenue estimate will be created.
  3. Select theBienniumto which the six-year nongeneral fund revenue estimate will be applied.
  4. Select theBudget Roundto which the six-year nongeneral fund revenue estimate will be applied.
  5. Enter aScenario Titlefor the six-year nongeneral fund revenue estimate.
  6. In theSix-Year Nongeneral Fund Revenue Estimategrid, confirm that the correctFundandRevenue Source Codeappear for the revenue pertaining to that fund.
  7. Select theRevenue Action(send to or receive from) and Agency associated with that action (if applicable). If you collect revenue on the behalf of another agency, select “send to”. If you receive revenue from another agency, select “receive from”.
  8. Select the Agency that applies to the Revenue Actioncolumn.
  9. Confirm the nongeneral fund revenue estimate for the years in the columns labeled,FY 20XX Dollars. Make any changes or updates as necessary. Remember: any new NGF revenue sources pending a decision package (i.e. new policy) should not be incorporated in these changes. You should use the Decision Package Module, specifically the NGF Revenue Source Tab, within that module, to reflect any new nongeneral fund revenue sources you anticipate will require additional appropriation.
  10. Click theMethodologycell for the current nongeneral fund estimate. In the popup window that appears, review the methodology entered for that nongeneral fund estimate. Make any changes as you see fit.
  11. Add rows to the Six-Year Nongeneral Fund Revenue Estimate grid as needed to specify estimates for multiple funds.
  12. Click theSave Scenariobutton to save the current six-year nongeneral fund revenue estimate. In order to save new scenarios, change the title and estimate details for an existing scenario and click the Save Scenario button again.
  13. To load an existing scenario, choose the scenario that you would like to load from theScenariodropdown and click theLoad Scenariobutton.
  14. When complete, submit the revenue estimate as indicated in the Agency Analyst and Agency Reviewer quick guides.

2015 Nongeneral Fund Revenue EstimatesPage 1